After that the dividend will grow 5 per year and be paid, Financial Management

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After that the dividend will grow 5 per year and be paid

Stock A paid $1 of dividend yesterday. You bought the stock today morning. Stock A does not pay dividend next year but 2 years from now it will pay a dividend 20% more than the last paid dividend. After that the dividend will grow 5% per year, and be paid forever. If the required rate of return is 10%, how much should you pay for the stock today?

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Financial Management: After that the dividend will grow 5 per year and be paid

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Financial Management: After that the dividend will grow 5 per year and be paid

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